Almost a dozen STD operators, still we have no choice at all

Kalyan Parbat, TNNAug 1, 2006, 12.00am IST

KOLKATA: The mad rush for NLD and ILD telephony licences goes on. And it isn't courtesy, the charm of a dirt-cheap entry fee of Rs 2.5-crore for each licence. Nearly every access provider, be it Hutch, Idea, Spice or Essar is out to grab one to prevent its captive long-distance mobile traffic from disappearing to some third-party NLD/ILD operator.

Even internet service providers (ISPs) are making a dash for NLD/ILD licences in response to the growing demand for virtual private networks (VPNs) and broadband access services from the BPO guys.

But there's a strange twist in the tale. At a time when the long-distance turf is revving up and folks like MTNL are offering STD calls between Mumbai and Delhi at local rates, it's somewhat ironical that majority of the country's telecom subscribers still can't choose their own NLD/ILD service provider.

Worse, Trai admits it is in no hurry to ring in the carrier-access code (CAC), the system of numbering codes that will empower every end-consumer to choose his NLD and ILD carrier. This perhaps comes as a surprise at a time when there are at least 10 NLD licencees — BSNL, Bharti, Reliance Infocomm, VSNL, MTNL, RailTel, PowerGrid, Gail, HCL-Infinet and i2i Enterprises.

When contacted, Trai chairman Nripendra Misra told ET: "At present, Trai is trying to meet DoT's September 30 deadline for submitting recommendations on the spectrum policy and 3G licencing. In so far as the carrier access code (CAC) goes, you could say it is in the back-burner."

It's well known that without the coding system, it will be impossible for end-consumers to choose their primary NLDO or ILDO. And the STD call benefits now available to MTNL subscribers in Mumbai or Delhi will not flow down to say BSNL subscribers in big other cities like Kolkata, Chennai, Bangalore or Hyderabad.

But Trai's diffidence in ringing in CAC isn't holding up the NLD/ILD aspirations of either mobile access providers or ISPs. "For access providers, the NLD/ILD scene is very attractive as it lets them to keep their captive STD/ISD mobile call traffic. They can also prevent the 'pass-through' (long distance call-carrying charges) from leaking out to third-party NLD/ILD carriers," said top industry circles.

Elaborating, they said, "In absence of an NLD/ILD licence, access providers like Hutch Essar, Idea or Spice are forced to pay pass-through charges to third-party long-distance like Reliance, VSNL, BSNL or Bharti to carry their captive STD/ISD traffic."

The dash for long-distance licences is equally visible among ISPs. This is especially after DoT made it mandatory for ISPs offering domestic and international VPN services to apply for NLD/ILD licences.

At a time when BPOs and MNCs have realised intra-group communication using VPNs is lot cheaper than traditional leased-line networks, nearly every serious ISP from HCL Infinet, Tulip to Sify is keen to offer VPN facilities and other managed network services.